Jantri Rates #Ahmedabad: Understanding the REal Impact

The Ahmedabad #realestate market is growing at an exponential rate triggered by initiatives & #infrastructure development in the area – but will the recent revision in #JantriRates pose a challenge in its upward trajectory? After 12 years, the government of #Gujarat announced a 100% hike in Jantri Rates, aka. the circle of rates in other states, which is going to impact the market value of property in the state. The government came to this decision post reviewing sales deeds from the last 3 years. But the action has received widespread criticism from realtors and recognized industry bodies for multiple reasons. Here’s all you need to know about this.

Why did Government Hike Jantri Rates?

Jantri Rates were last increased 12 years ago, and to tune in with the urban, infrastructure and rural development in the region, the government proposed to hike the rates on immovable property again, and this time by a massive 100% jump.

Various factors like the market value of properties, property usage, amenities around the property and location together determine the Jantri rates. Basis the revision in Janti Rates, the revenue from registration charges and stamp duty will also go up.

Why is the RE Industry Opposing the Initiative?

As the announcement came in without consultation and unexpectedly, the developers are showing resistance to the sudden change proposed. During the last Jantri hike, the government accepted suggestions from the RE fraternity, delaying the implementation and bringing down the 100% hike to 50% taking into consideration the recommendations made.

The sudden announcement this time is impacting ongoing high-value land deals in the region with farmers. While last time, the hike was done basis of a land price survey, the current decision is seen as ‘unscientific’ by developers as at various locations, Jantri prices are now more than the existing market value of the properties.

In response to the demands, the government has deferred the implementation to 15 April 2023, however, seems unwilling to roll back the hike by 50%.

Summing Up…

The State government plans to hit various objectives with the proposed hike – first, of course, tuning in with the rise of property value to urban/rural development and infrastructure; second, the increase in direct revenue it will receive from stamp duty and registration charges; and final one being, able to curb black money transactions in real estate by bridging the price gap between property market value and Jantri rate. While the decision to hike the prices will definitely have an impact on real estate transactions, the slight relaxation with delay in implementation will help developers push the stalled deals at old rates.

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